Answer:
$59,309
Explanation:
Years Cash flow PV Factor at 10% Present value of cash flows
0 225,000 1.00000 225,000
1 75,000 0.90909 68,182
2 75,000 0.82645 61,983
3 75,000 0.75131 56,349
4 75,000 0.68301 51,226
5 75,000 0.62092 <u>46,569</u>
Benefit of remodeling project <u>$59,309</u>
Note: Year 0 PV factor = 1/(1+10%)^0 = 1
Answer: Monetary unit assumption
Explanation: The monetary unit of assumption states that every transaction of the business can be expresses in relation to monetary units and these units will be stable over time. The key point in this assumption is that it assumes monetary units to be stable and dependable.
In the given case, Lawton records transactions in dollars and disregards changes in value of dollars over time. Hence, we can conclude that Lawton is following monetary unit assumption.
Answer: The shareholder model of corporate governance
Explanation:
The agency problem is typically a conflict of interest in a relationship whereby a party is expected to act in the best interest of the other party. It should be noted that in corporate finance, the agency problem is a conflict of interest that takes place between the management of the company and the stockholders.
The agency problem wherein ownership and control of a corporation are separate is associated with the shareholder model of corporate governance.
Answer:
The answer is "Option C".
Explanation:
The Costs of production relate to the price of a company producing or producing a service, which can include the range of expenditures, like labor, manufactured goods, supplies of items, and expenses. It has mainly four steps that can be defined as follows:
- Complete the physical unit flow.
- Measure the production unit's equivalent.
- Compare the value per unit for output equivalent.
- Assign costs to finished units and manufactured units.
Answer:
8448.22
Explanation:
We are asked to calculate the present value of 20,000 in ten years.
<em>Resuming: </em>in this kind of problems we are asked for which lump sum becomes a certain amount in a given period of time at an annual rate